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STRIPE
Stripe is a developer of a financial infrastructure platform designed to provide payment processing solutions to businesses of all sizes. Register your interest to invest in the payments revolution with Alta today!
Alta is proud to have secured access to Stripe, one of the world’s leading global payment infrastructure disruptor [1]. The opportunity was made accessible through a Target Fund Manager, with the fund investing into Stripe at an attractive valuation of US$62.5 billion (equivalent to US$25 per share). This would be an approximate 34% discount to the peak primary funding round of US$95B valuation, where reputable names such as Temasek and GIC have taken part in [2].
Stripe is a global provider of non-cash payment facilitation infrastructure, processing and software for merchants, with particular strength amongst digitally native companies. 
Figure 1: Key information on Stripe
Founded in 2010, Stripe is a developer of a financial infrastructure platform designed to provide payment processing solutions to businesses of all sizes through a large array of Application Programming Interfaces (APIs). Supporting more than 135 currencies and over 50 payment methods in 47 countries, Stripe’s platform offers a range of services, including online payments, in-store payments, mobile payments and subscription billing. It also provides a suite of ancillary commerce enablement and financial services products, such as fraud management, tax automation and Banking-as-a-Service, creating an all-in-one platform for its clients.[3]
Figure 2: Stripe’s range of APIs
In the digital payments landscape, Stripe's technology platform stands out for its comprehensive approach. The platform integrates the functionalities of a payment gateway, service provider, merchant acquirer, and processor to offer seamless and hassle-free payments experience worldwide.
Figure 3: Stripe’s key investment highlights
Stripe’s revenue increased at a CAGR of c.70% from US$200m in 2014 to surpassing US$14B in 2022
User base has grown more than 50% YoY since 2014, with more than US$800B in payments processed in 2022, and is projected to surpass the US$1T mark in 2023[5].
Figure 4: Select customers of Stripe across different industries
While many consumer internet companies are experiencing a normalization of growth, Stripe has demonstrated resilience as a B2B payment infrastructure provider. Its strong market position, innovative technology platform, and diversified business model have enabled it to maintain its growth trajectory and achieve c. 20% of YoY volume growth in 2022, outperforming the modest 9.7% growth of the e-commerce sector[6].
Figure 5: Stripe’s Key Financial Metrics
Although Stripe has delivered growth in key volume and revenue metrics each year since inception, its current fundraising round is attractively priced as compared to its previous rounds – this despite Revenue and Transaction Volume numbers having grown over this time.
Figure 6: Stripe’s Valuation Discount
Figure 7: Stripe’s Fundraising History Overview
Capturing and growing with the market
Globally, the expected increase in digital adoption in payments by 10% from 2022 to 2025, coupled with the 8% shift away from cash, presents a significant long-term growth opportunity for Stripe as a payments solution provider. Additionally, as e-commerce continues to expand with a projected CAGR of 11.34% through 2027, the demand for Stripe’s digital payment solutions is expected to grow.[7]
Figure 8: Global POS Payment Outlook[8]
However, as of 2022, e-commerce sales merely accounted for less than 20% of overall retail sales.[9]Stripe's offline payments services address this substantial market gap, enabling the company to establish a formidable position in the payments solutions industry, enhancing its market share across both offline and online retail channels.
Alta is proud to have secured access to Stripe through our Feeder Fund vehicle, Alta Asset Fund 1.
Minimum Ticket Size: Through the Alta Asset Fund structure, we've successfully brought down the minimum ticket size to as low as US$10,000 for investors.
We have closed our first round of investments into Stripe, and we're currently in the midst of gathering interests for the second close.
